BUG] Desktop app loses access to past sessions and local project directories after updates

Preflight Checklist

• [x] I have searched existing issues and this hasn't been reported yet
• [x] This is a single bug report (please file separate reports for different bugs)
• [x] I am using the latest version of Claude Code

What's Wrong?

After multiple Claude Desktop app updates, I've lost access to past Claude Code sessions and can no longer select local project directories I was previously working in. The app now forces GitHub repo connection when opening the Code tab, with no option to select local folders where past work was done. Sessions created in previous versions of the app are invisible in the current UI despite existing on disk.

Environment

Platform: macOS (Darwin)
Device: MacBook Pro
Account: Claude subscription (account ID: 72351c39-b677-4098-bc0c-f6ff7ed2198a)

Symptoms

1. Cannot select local project directories

The Code tab forces GitHub repository connection rather than offering a local folder picker
Previously accessible local directories are no longer selectable
Past sessions used local directories that worked in earlier app versions

1. Past sessions exist on disk but are invisible in the app

Four session files confirmed on disk at:

~/Library/Application Support/Claude/claude-code-sessions/72351c39-.../e69b32d6-.../

Files are 66KB each with valid data (not empty/corrupted): (when digging into the files in terminal - all link to the same project folder)

-rw------- 66K May 29 14:45 local_3bfc551a-3767-458a-b849-522fce5fc0cf.json
-rw------- 66K May 24 18:27 local_af200aa4-7351-4883-a81f-219db56e8255.json
-rw------- 66K May 24 18:27 local_d3a95f9a-4d7c-4edb-ac67-4fbe93e42374.json
-rw------- 66K May 28 11:40 local_dc6f6418-3006-4bd0-9d6b-cbd56fee280b.json

The desktop app shows none of these in the sidebar or session history
CLI (~/.claude/projects/) only shows one session, not the four from the desktop app

1. Regression across updates

These sessions and local directories were accessible in previous app versions
Multiple sequential app updates have progressively broken session visibility and directory access
No migration path or notification was provided when storage structure changed

What Should Happen?

Expected Behavior

The Code tab should offer a local folder picker as an equal option alongside GitHub repo connection
Past sessions should be visible and resumable in the sidebar regardless of which app version created them
App updates should migrate session references to the new storage structure, not silently break them
CLI sessions (~/.claude/) and desktop app sessions should be visible from both interfaces

Actual Behavior

Code tab only offers GitHub repo connection — no local folder picker
Zero past sessions visible in the sidebar despite four valid session files on disk
No migration occurred — data is orphaned on disk with no UI path to access it
CLI and desktop app session storage are completely siloed with no cross-visibility

Impact

Complete loss of access to past project context and conversation history
Cannot continue work on local projects through the desktop app
Forced to use CLI as workaround, losing the desktop UI benefits
Repeated across multiple app updates with no resolution — erodes trust in the platform's reliability for ongoing development work

Error Messages/Logs

Steps to Reproduce

Steps to Reproduce

Have existing Claude Code sessions created in earlier versions of the desktop app using local project directories
Update Claude Desktop app to latest version
Open Claude Code tab
Attempt to select a local project directory — no local folder picker available, GitHub connection forced
Check sidebar for past sessions — none displayed
Verify sessions exist on disk at ~/Library/Application Support/Claude/claude-code-sessions/<accountId>/<orgId>/ — files are present with valid data

Claude Model

Not sure / Multiple models

Is this a regression?

Yes, this worked in a previous version

Last Working Version

Unsure - I have been force updated constantly for the past 3 weeks. Everything was fine prior to Opus 4.7 release, whichever version that is.

Claude Code Version

v2.1.168

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

Currently using claude CLI from terminal with cd into project directory. Session files remain on disk and could theoretically be re-linked if the app's session indexing were repaired. But this is not finding proper project directory history, or does it seem like this was properly pathed.